Cyprus Bailout Is on Again, Funded by Asset Seizure

Savers with over $130,000 could lose more than one third of deposits

"Imagine waking up to find out that as much as 40 percent of the money you thought was safely deposited in the bank was seized, without your permission, to bail out a near-bankrupt government," reads Fox News' report on the new Cyprus bailout deal.

That's the Monday morning faced by thousands of Cypriots with deposits of over $130,000 in Cyprus's two main banks - the Bank of Cyprus and Laiki bank. 30-40% of their savings will be seized to pay for the bailout deal, according to the BBC (the percentage hasn't been confirmed yet). Laiki Bank, the country's second largest, will be dissolved, which means significant losses for savers with more than $130,000.

The asset seizure means Cyprus can raise the $7.5 billion needed to secure a $13 billion bailout from the European Union. Without the bailout, Cyprus's banking sector would have collapsed.

Ordinary Cypriots are upset, but so are Russians, who have $31 billion deposited in Cyprus banks, and will have their assets seized. Russian Prime Minister Dmitry Medvedev said the levy on large depositors - many of whom are Russian - was tantamount to "stealing." "What is going on around Cyprus is that they are continuing to plunder loot there." He compared the seizure of deposits to communist seizures of assets in the Soviet Union.

Cyprus banks are issuing no more than 100 euros from ATMs, in hopes of averting a bank run.

Europe's markets have reacted well to the news, and the Euro has bounced back.

Success in this world is always punished, as those that sit around and achieve nothing always want to punish and persecute those who strive to excel. With obama in office something like the Cyprus situation could easily come to America. obama has no respect for success either.

I have little or no confidence in our congress to do anything other than steal what is not theirs. They are unable to pass any laws that actually do anything other than please their special interest groups or oppress minorities. When things get bad they will seize assets but only from individuals they deem enemies of the state not themselves or their rich friends.

@EzraBlade How would you rate the Caymans as being "safe"? Cyprus is the russians cayman and this happened. I had some money offshore that I pulled instantly once I heard of this. Money is not safe anywhere today. I'll just keep it on a paper chase for a while until we see how the dust settles.

This already happened in the US before. The Progressive-Liberal-Democrat President FDR back in 1933 signed Executive Order 6102 and had the IRS steal peoples 'Gold'. ____ The difference between Cyprus and the US is that the US can print/digitise all the money it wants to and Cyprus can't. The US will just print the Dollar away and make what you have in the bank less valuable (reduce your money's purchasing power) a.k.a. Hyper-Inflation.

Cyprus is nothing more than a drill for the banks. They're all intertwined throughout the world. They want to see if the public outrage turns violent and how violent and who are players they might not have calculated their response well enough. They're doing it on an island so they can control the people better. This is a drill. Coming soon to a bank near you. When the ultra rich can't figure another way to legislate their corruption, they'll simply take your money.

As long as a-holes Like Obama keep ruining our country, it's more than likely to happen. Actually, it already has. Obama taxes you when you sell your house now. That's a tax on assets, not earnings, just like what's happening in Cyrus. Only difference is, Obama is a sneak and a bastard and doesn't bother explaining what he's really doing. He's just a sneak and a freak taking advantage for the gullible, stupid, masses. we now have for American citizens. It's embarrassing to associate with the Obamaphone crowd. I think I'll go back to the old country and die where my real family is from. To hell with America now. We are no different than the European saps anymore. Screwed by our own President.Ain't that sumpin'?

The only difference between this and the American bailouts are semantic. One takes a percentage of everyone's "money" and gives it to the banks. The other takes a percentage of the value of everyone's "money" and gives it to the banks.

Anyone that reads my posts probably knows that I'm no fan of the wealthy. Most of them equate success with wealth. They tend to be bums acquiring their wealth through the work of other people. Seizing bank deposits from anyone, even wealthy bums, is theft and should be punished. If there were any justice in this situation, our government would break relations with the European Union over the seizure of the monies in those bank accounts.

Sure it can happen here. Why do think we've had nothing but gov't. infringement from Bush,Sr.- Clinton - Bush, Jr. & now BO ? They have the same final plan & middle class , working Americans are their target . When you see billionaires dumping stock, like now - the shyt is bout ready to hit the fan. Somebody has to pay for obummacare & the illegal alien invasion life support meant to water down the American poulation to achieve that 3rd world status these 'World Elitist Lords ' are aiming for .

There's a precedent in President Roosevelt confiscating Americans' gold in the 1930s. We keep printing paper money to cover deficits and make interest payments just like post World War I Germans did. That resulted in a nightmarish inflation rate for Germany.The action and reaction rules still apply even if we're operating under a different language.

@Denizen_Kate Oh its out there, You just cant hear it, Because you go thru life, Just expecting everything is just a ok.Thats what you liberals do."Oh come on, it couldnt ever happen in America" is what you live by.I just dont understand people like you KateYou have your head in the sand dont ya

@Vance1 - My head fits nicely right here on my shoulders, as always. I never said it couldn't happen, I asked you to name me one political leader who is advocating for it. I just don't understand people like you, who seem to see something to fear in every topic. I don't "just expect" anything, Vance. I pay attention, I plan, and I work my plan.

@Denizen_Kate YES Kate... I fear, I fear for my grand children, they are going to get passed on a very shitty American life.Because people like you wanted things.People like you pushed a bankrupting gay moral less agenda.Yes Kate, I do blame people like you, who always want more laws and more government interaction.Rather than self reliance and living within your means.

@Vance1 - How would you know whether or not I was self-reliant? How would you know whether or not I lived within my means? What makes you think I want more laws, more government?(I'm actually more Libertarian in that regard.)

What makes you think you know the least thing about me? Your assumptions are both arrogant and rude, Vance. Have I insulted you? I thought I was being quite civil.

All the more reason to get your money out of banks and keep cash, gold, or keep your money in overseas banks that won't submit to invasion of privacy or funds. Used to be that was only for the rich or the crime lords, but now even everyday people are realizing the benefits.

It already happened in the US by President Roosevelt (FDR) when he signed Executive Order 6102 on April 5, 1933. FDR had the IRS confiscate 'Gold' from US Citizens. ___ Do I believe the US fed. gov't will take Federal Reserve Notes/digital Federal Reserve Notes from peoples bank accounts.....NO. Unlike Cyprus, the US can have the Federal Reserve just print/digitise more money and that in itself will devalue whatever money/Fed Notes you have saved in the bank. It is just as good as stealing though.